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Debunking Common Misconceptions About Outsourcing

Posted March 23, 2023

Outsourcing has been shrouded in a number of myths and misconceptions, such as the notion that it will always cause job losses or that offshore teams are incapable of delivering quality results. In this blog post, we aim to challenge these inaccurate assumptions and provide readers with an honest overview of both the benefits and drawbacks associated with outsourcing.

Outsourcing as a tool for business growth

With outsourcing, small businesses can access professional services without the need to hire full-time employees, saving time and money. Outsourcing helps small businesses save costs on office expenses, equipment, and salaries. This, in turn, allows businesses to focus on their core competencies, such as delivering exceptional products and services to their customers. Moreover, outsourcing enables small businesses to scale rapidly, increase their efficiency, and stay competitive in the marketplace. Many small businesses have turned to outsourcing to help achieve their goals for growth, and it has significantly aided their success.

Some business owners may be hesitant to outsource their business processes because they feel it may create security and privacy issues. There is a fear that sensitive data may be compromised or misused. Business owners may also reject outsourcing because they worry the quality of a remote worker's work may not match the standards of their in-house employees. Another concern is that foreign workers may not understand the intricacies of the cultural and business landscape of the company which may lead to miscommunication and errors.

While these fears are understandable, it's important to note that these issues can be resolved by having clear systems in place. Let's take a closer look at some of the common misconceptions associated with outsourcing and see how you can design your workforce to avoid the usual pitfalls of outsourcing.

Common myths surrounding outsourcing

Myth 1: Outsourcing can have a devastating effect on local job markets, as it leads to massive reductions in employment opportunities.

The pervasive belief that outsourcing is a harbinger of job loss has been the root of numerous misunderstandings and friction between countries. While it is undeniable that some outsourcing procedures have led to a reduction in jobs, particularly as companies strive to reduce expenses by relocating their operations to more economical locations, it is essential to recognize that outsourcing is not a one-dimensional phenomenon.

Far from being the villain it is often perceived to be, outsourcing can, in fact, be a catalyst for the creation of new jobs and can contribute significantly to a nation's economic growth. The process can open up opportunities for both local and global markets to thrive, thus introducing new roles and positions that might have not existed otherwise.

Businesses can take several steps to ensure that outsourcing does not reduce job opportunities in the market. Firstly, they can outsource non-core, non-revenue-generating activities, so that their internal workforce can focus more on core competencies and generating revenue. This means that the business is able to expand, creating more job opportunities for people working in the core activity sectors.

Secondly, businesses can recruit talent both locally and globally. If outsourcing is practiced with care and ethics, it can lead to new partnerships and expansion plans that benefit everyone, including in-house employees, outsourced workers, and the local and global communities where they work from.

Outsourcing can be beneficial for small businesses that need to reduce their overhead expenses, streamline operations, and improve their competitiveness, however, responsible business leaders should always be mindful of their impact on the job market as a whole, and should strive for equitable business practices that benefit their employees, partners and the wider community. Ultimately, a broader and more balanced outlook on outsourcing is crucial to fully comprehend its potential benefits and challenges.

Myth 2: Outsourcing can often result in a decrease of work quality.

Dispelling the common myth surrounding outsourcing, it is crucial to recognize that the quality of work is not inherently compromised when partnering with external agencies. Contrary to popular belief, many outsourcing arrangements yield exceptional results, thanks to a well-thought-out selection process, strong communication channels, and a shared understanding of the project's goals.

By devoting the necessary time and attention to these factors, companies can rest assured that their outsourcing partners will deliver work that meets, and even exceeds, their quality expectations. After all, the success of a collaborative endeavor lies in the strength of the relationship as well as the ability of both parties to effectively work together in pursuit of a shared objective.

Myth 3: Outsourcing is only for large companies with much room for flexibility in finances.

While it is a common perception that outsourcing is solely within the grasp of large companies or meant for expansive projects, the reality paints a different picture. Outsourcing can actually be a boon for organizations of all sizes, including small businesses and large corporations. By tapping into the expertise of external professionals, businesses not only save time and resources but can also realize their potential through collaborative efforts.

Additionally, even on a smaller scale, outsourcing tasks could boost the efficiency, allowing firms to focus on their core competencies, ultimately ensuring sustainable growth. In today's interconnected and technologically driven world, outsourcing offers a wide array of opportunities, expertise, and cost-effectiveness, thus enabling companies to reap benefits regardless of their size.

Some of the most common work roles that can be outsourced without breaking the bank are administrative tasks including data entry, scheduling, bookkeeping, virtual assistance and graphic design for digital assets such as social media banners, blog images and infographics. It's important to look at the bigger picture beyond costs - task outsourcing allows businesses to stay focused on their core business competencies by delegating time-consuming but essential tasks to competent third-party service providers who are capable of performing them efficiently, thereby increasing efficiency and productivity of the organization as a whole.

Myth 4: Outsourcing is only best suited for tasks needing basic proficiency.

Contrary to this common myth, outsourcing is not only limited to low-skilled jobs. In reality, businesses can also use this strategy to outsource tasks such as software development, marketing, and financial analysis.

The growing trend of technological sophistication in our society has opened up the scope for more advanced areas of outsourcing that require specialized skills for various kinds of projects. This makes it increasingly competitive and attractive for many companies to search for effective solutions when addressing their operational needs.

It is essential for businesses, however, to establish clear workflows when relying on external resources to handle crucial tasks. This not only ensures that the desired results are delivered but also maintains seamless communication between both parties while preserving the quality and security of work. A well-defined and structured workflow acts as a roadmap for the involved teams, helping them remain focused and aligned with the business's objectives. In the absence of such clarity, projects run the risk of delays, miscommunications, and subpar performance, thus jeopardizing the goals of a company. As businesses continue to rely on outsourcing for professional services, emphasis on establishing transparent and effective workflows will become even more critical for their long-term success.

Myth 5: Opting for an outsourced solution is always more cost-effective than attempting to complete a task internally.

The allure of outsourcing often stems from the belief that it guarantees significant cost savings when compared to performing tasks in-house. However, this is not a one-size-fits-all situation, as the financial viability of outsourcing ultimately depends on various factors.

Companies must carefully consider the complexity of the work being outsourced, as simple tasks may indeed be more cost-effective to outsource, while more intricate projects might prove to be more expensive due to the additional resources and expertise required. Similarly, labor costs differ greatly between countries, meaning that potential savings may fluctuate dependent on the chosen outsourcing location.

Lastly, companies cannot overlook the overhead costs involved in outsourcing, which may include expenses such as training, quality control, and communication barriers. As such, a thorough analysis of both the costs and benefits associated with outsourcing is crucial for companies to determine whether it is a suitable and cost-efficient choice for their specific needs.

Is outsourcing right for your operations?

In today's competitive business landscape, organizations often find themselves contemplating the idea of outsourcing tasks to accelerate growth and performance. However, it is essential to recognize that outsourcing should take a tailored and personalized approach that works for everyone on the team, and should not be approached based on popular misconceptions.

To determine if this strategy is right for your organization, it's essential to consider factors such as finances, internal capacity, and the effort required to establish a robust outsourcing system. Delve into your organization's specific needs and capabilities, analyze the potential risks and rewards, and make an informed decision that takes into account the unique circumstances of your company. The key to successful outsourcing lies in understanding that it is a multifaceted process; one that demands thorough investigation and utmost clarity, rather than blindly subscribing to prevailing myths.

If you're considering outsourcing for your business, don't hesitate to reach out to us for more information and guidance. Remember, outsourcing can be a powerful tool for business growth and success when done responsibly and with careful consideration. So take that next step and explore the many opportunities that outsourcing can offer your business!

Every business can benefit from hiring a virtual assistant for various reasons. The most obvious reason is that employing a virtual assistant frees up your precious time, and allows you to focus on growing your business as the owner.  

Virtual assistants can take care of various business processes, from customer service to event organizing. If you’re in the market for some help in sorting out organisational matters but just can’t make a decision yet, this list of statistics could help you justify the need to hire an assistant. Read on for 10 statistics on outsourcing assistance for your business. 

Over 80% of corporations plan to use a more flexible workforce. (Intuit

Modern times have influenced traditional employment. More and more large companies hire freelancers and part-time workers, making virtual assistants more popular nowadays. This trend is likely to continue especially with the pandemic encouraging remote work. Virtual assistant usage statistics show that more than 80% of big businesses have decided to raise the number of contingent workers. 

Around 37% of small businesses use outsourcing to handle at least one of their business processes. (Capital Counselor

If you hire a full-time assistant on-site, you must factor in additional expenses such as a desk, computer, and so on. If you hire a virtual assistant, on the other hand, you will avoid these expenditures and save 78 percent of your company's costs every year, which greatly benefits small businesses who have to focus on scaling their resources. 

Virtual assistants can help firms save as much as 78% on operational costs in comparison with a full-time employee. (Capital Counselor

Technology is constantly evolving and continuously benefitting organizations, so companies need to make sure to follow the trend. Over 94% of organizations using outsourcing make due improvements by hiring third-party providers to assist.  

The most common VA specialties include general admin work and project management. (Upwork

According to statistics on virtual assistants, companies that hire virtual assistants sometimes require them to do a few particular tasks, while others give VAs crucial roles in their teams. Some common virtual assistant services demanded by employers include general admin work, project management, bookkeeping, billing and invoicing, content research, blogging, customer research, customer support, data entry, etc. 

Independent workers are more satisfied compared to traditional employees. (McKinsey

People who have chosen to do independent work and rely on it as their primary source of income show increased contentment in their work. If we compare them to people who have 9- to-5 jobs by choice, we’ll see that the latter are less satisfied. 

The top two locations for hiring VAs are the Philippines and India. (Distinguished

The Philippines and India are the best destinations for finding virtual assistants because both countries are on the top of the list of global outsourcing. Virtual assistant trends show that while Filipinos are easy to work with and excel at Business English, India is popular for IT and back- office work. 

Six out of 10 virtual assistants boast college degrees. (Zippia

Modern society has brought changes to the way we work and look for a job. As a result, many skilled professionals have chosen to work remotely as virtual assistants. Data suggest that nearly 60% of virtual assistants are well-educated professionals who have a college degree to prove it. 

The average annual pay for virtual assistants in the US is $67,115. (ZipRecruiter

Virtual assistant rates of income can vary depending on the country as well as their skill set and specialties. However, the average pay of virtual assistants in the United States is $67,115. From that, it can be inferred that virtual assistants make $32/hour, or around $5,600/month, on average. 

The increase in productivity from workers who shifted to a work from home arrangement is worth an enormous $1.3 billion annually. (Distinguished

Many company owners have turned to virtual assistant services to help them with everyday duties such as social media management, email marketing, and project management during the last few years. This has allowed businesses to do more, and workers feel more productive towards their KPIs. Thus, the worldwide virtual assistant business is growing in tandem with the continuous rise in demand.  

There are over 20 categories of virtual assistants. (The PennyMatters

Virtual assistants come in a variety of shapes and sizes, depending on the business. Because the corporate sector is so broad, there is no definitive number of VA kinds. However, we can still construct a list of the most common types: virtual administrative assistant, virtual social media marketing assistant, virtual assistant writer, virtual bookkeeper, and virtual real estate assistant. 

Final Thoughts 

We hope this list helps you prepare and decide whether your business could benefit from hiring a virtual assistant.  

Don’t know where to look for a qualified virtual assistant? NFT can help! Send us a message today or reach us at +61 2 9089 8875 to take the first step. 

In today’s age of highly digitized processes, the difference between a successful business and one that is lagging behind is the integration deft management and suitable skills to complement its processes.  

From small concerns to large establishments, many businesses are choosing to acquire business assistance as innovative and advanced services have become increasingly accessible in the current competitive and ever-evolving business climate.  

What is Business Assistance? 

The textbook definition of business assistance, or more commonly called business outsourcing, is the process of subcontracting multiple business operations and functions to third-party service providers.  

That means that it is a business practice in which an organization contracts with a third-party vendor or external service provider to perform a specific business task or function. The third-party service provider is therefore solely responsible for carrying out all the tasks pertaining to that business function. 

When Do I Know I Need Business Assistance? 

There are many reasons why companies acquire business assistance. The major reason is to save money and increase their work efficiency.  

Generally, companies outsource skills because they get better, cheaper, and faster work done for their particular task. They can hand over tedious and time-consuming tasks that often take lots of time and effort. Thus by getting business assistance, they can focus on more critical work, turning to their advantage in the market.  

Some companies outsource their work to third-party services as they cannot hire in-house employees who have specialized skills to perform specific tasks. Another reason is that sometimes companies don't want to handle regulatory requirements or obligations, and that's why they move over the management of these tasks to third-party services. 

If you find yourself in these business situations, it may be time for you to start seeking assistance for your operations. 

What Processes Should I Get Assistance For? 

Broadly speaking, organizations get assistance for two key areas of operations. They include: 

  1. Front office functions and services that pertain to customer-related services such as sales, marketing, support, etc.; 
  1. Back office functions and services that pertain to core internal business operations such as payment processing, quality assurance, information technology services, accounting, regulatory compliance, human resources, etc. 

Below, we go into more detail of some functions that companies get assistance with: 

  • Customer Interaction 
    An assistant in this function may handle the company’s email services, voicemail services, telemarketing, appointment scheduling, payment and order processing, warranty administration, surveys, customer feedback and support and other types of services.  
  • Software and IT  
    Assistance in this function may include providing technical support functions like implementation services, IT helpdesk support, development and testing of application and data, among other services. 
  • Back-Office Operations 
    Here the outsourcing service party provides a wide range of services, some of which may include data entry, data extraction, data conversion, warehouse management, transportation administration, cheque processing, logistics and distribution, etc.  
  • Knowledge-Based Services  
    Assistance for knowledge-based functions may include high-level processes like marketing, data analytics, data processing and management, data mining, research, etc. 
  • Accounting and Finance  
    Your business can also benefit from getting assistance in functions involving payroll, auditing, receivables, regulatory compliance, accounts payables, billing services, etc.  
  • Human Resource 
    Here the outsourcing service provider can help to address challenges in the workforce by covering employee management, time and attendance, payroll, insurance processing, training, hiring and recruitment, etc. 

Benefits of Getting Business Assistance 

  • Reduce Operating Costs 
    Outsourcing often saves money and time rather than hiring a full-time employee, and you also get to know beforehand how much this costs and what services you will get. This will mean that you will know ahead how much you will spend and what services you're going to get. This also makes sure that you don't spend before your budget and get quality services simultaneously.  
  • Focus on Critical Areas of the Business 
    By outsourcing small, unimportant tasks, you can focus on more important tasks that need your attention rather than working on less important ones. You can outsource small tasks or tasks that need lots of time or repeat work. This will give you more time, energy, and attention to spend on more important work.  
  • Access a Wider Talent Pool 
    Outsourcing allows you to work with specialized, experienced people in their field. Sometimes, you might not get the same specialized talent in-house that you can get by outsourcing. By outsourcing, you can get quality work from experts to help you achieve your business goals faster. 

Cons of Getting Business Assistance 

Like all business decisions, company executives must arrive at the decision to acquire business assistance by weighing and considering various factors and reasons in addition to being mindful of the economic conditions and market forces. 

Transferring internal processes to an external third party or outsourcing company requires change management as it impacts the workflow processes, employees and the business as a whole. This is not necessarily a negative outcome that may spring from getting assistance for some business operations, but when this step isn’t done right, it may impact the organization negatively rather than create benefits.   

Get the Right Business Assistance You Need 

Employee outsourcing or acquiring assistants for multiple business operations is something that many organizations have benefitted from. It’s starting to become a normal setup in most companies, where company executives focus on the more critical areas of the business while employing talents in repetitive and time-consuming operations.  

Before jumping on a decision to get assistance, it's essential to know which is the right one for you that meets your needs and demands. NFT offers business assistance as one of our services and we can help you get the right talents for the functions outlined above.  

If you’re in the market for business assistance, contact us at +61290898875 or leave a comment below to get started with a free consultation. 

Want to outsource some of your business functions but are afraid that it will affect the quality of the work? Today, we will explain to you why you should never fear outsourcing.

What exactly is outsourcing some people may ask? Well, in definition, it is the practice of using third-party agencies to do the work that may have been done within the company before. It can be divided into three types of outsourcing - near-shore outsourcing, onshore outsourcing, and offshore outsourcing.

Fear of outsourcing exists because the company relinquishes direct control it has over the task by outsourcing. This uncertainty in the minds of the business owners and this fear is not unfounded. However, the benefits of outsourcing are too many to ignore. The solution to these fears is finding a reliable outsourcing vendor and making service levels agreements. These agreements include the level of service expected, the metrics to be used to measure this level, and the course of action if the levels are not achieved.

The reasons a company may outsource are many, some of them are:

  • Lets your business focus on core competencies

Some businesses may want to focus on their core business competencies as they may not have the knowledge and infrastructure to perform that business function in-house. Sometimes they may not wish to hire new staff especially for project-based jobs. Functions such as customer service, software development, and web development and design are amongst services that are often outsourced. 

  • Lower labor costs

Outsourcing gives you access to experts that are highly competent at lower labor costs.

Small business owners that have limited staff and infrastructure can outsource as well,as they can also outsource customer service, website management, and accounting to focus on R&D and also reduce costs that may be associated with hiring a full-time employee.

  • Time-difference advantage

When bigger companies choose to outsource, however, their outsourcing initiatives come with a different goal to accomplish. A company wanting to gain a time zone-based advantage can utilise offshore outsourcing for customer services and can have 24-hour customer support.

What you outsource depends on your key business activity. What you decide to outsource can be someone’s key competency and vice versa.

Outsourcing may have a bad reputation because people believe that the work is done by people who do not have a direct stake in the organisation and at a low cost. However, that is not the case, companies that provide outsourcing services are experts with their reputation to protect and there are many other safeguards. 

So you should not hesitate to give outsourcing a chance and prepare to grow your business in Sydney with the time and resources that you have freed up doing so. 


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